Sensex : Market Gets Support Due To Low Selling Of Foreign Investors

The Sensex climbed 1.1% on Thursday and the Nifty closed above some 10,000. Before the September quarter results of Reliance Industries, the stock gained 4% in the first place, which led to strong Sensex and Nifty. Selling has also come down on the part of foreign investors and the Rupee recovers. Market sentiment also improved due to these reasons. However, market analyst’s opinion is alienated on whether benchmark indices will revert to a new life at high levels.

The 30-share Sensex climbed 348.23 points to 32,182.22 and the Nifty touched 111.60 points at 10,096.40. Bank Nifty climbed 1% to 24,361.25. Rupee also jumped 5 Paise to 65.09, which is the highest level of rupees in present conditions.

Reliance Industries has a 7% weightage in the Nifty. It closed at 3.8% and closed at the lifetime high of Rs 872.50. The company will announce the results of the September quarter on Friday and before this, the value will be strong on the stock. Sun Pharma Industries remained second among the strongest stocks in the Sensex. It closed 2.6% and closed at Rs 539.40. The US Health Regulator has received the Establishment Inspection Report for the Dadra Plant. This led to a surge in Sun Pharma. Tata Consultancy Services’ shares were up by 2% to Rs 2,548.55. The company announced the results of the September quarter after the market closure before the stock was purchased.

Meanwhile, Foreign Portfolio Investors sold shares worth Rs 668.1 Crore, while Domestic Institutional Investors bought shares of Rs 872.5 Crore. This claim has been made in temporary data of stock exchanges. Foreign institutional investors bought shares worth Rs 869.5 Crore.

About the market, ICICI Direct’s derivatives head Amit Gupta said, “Foreign investors are not being sold as before. Earlier, he was selling shares of Rs 1,200-1,500 Crore every day. For this reason, the market has been getting support for the past few days. An investment of Rs 6,000 Crore has been made in the debt markets since September 29 of this year. This has strengthened the Rupee and the volatility in the equity market has come down.

Gupta said that the Nifty could go up to 10,200 levels in the October series. The level at which the index closed is below 0.8% of the record high of 10,178.95. On September 19, the Nifty touched the new peak. The Sensex too is down by 1.5% points from the lifetime high level of 32,686.48 since August. In August and September, FPI has sold an average of Rs 570 Crore on a daily basis.

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